The Influence Of Fdi On China's Economic Growth

The subject of this article is to find out the relationship between FDI andEconomic growth.With the integration of World Economic，more and more foreigncompanies enter into the Chinese market，FDI take a great share in domestic capitalmarket. It’s very necessary to figure out the interrelationship between FDI andeconomic growth In the situation of such large amounts of FDI come to the domesticmarket.Since1978our country carry out the reform and opening-up policy has alreadybeen30years，in these years，FDI has gone through several different stages，with somecorresponding characteristics. Every year our country introduce a large amount ofFDI，with the developing of our country，the financial gap has been basically made up，but the introduce of FDI has not stopped，the reason is FDI not only make up thefinancial gap but also bring in the advanced technique，improve the employment rate，promote the export. So it is necessary to introduce FDI. This paper establishes a modeltest the relationship between FDI、 GDP、 export、 advanced technique andemployment. The main method is ADF unit root test，Grainger causality test. Theinspection results is “FDI and GDP、advanced technique and employment are causeand effect.” The effect to GDP、export、advanced technique is very obvious，but theeffect to employment relatively small.In the last section，direct at the conclusion some policy suggestions are put forward.Mainly includes optimization of FDI structure、to develop an international competiti-venes enterprise、adjust the tilt policy in the Midwest region to promote development、deepen the reform of economic system to create the good investment environment.